Another blowout in asylum seeker costs

The Gillard government has revealed another $3 billion blowout in the cost of managing asylum seekers.

Tuesday's federal budget shows asylum seeker costs will be almost $2.9 billion in 2013-14 - more than $1.5 billion more than previously estimated. And over the four years to 2015-16, the blowout totals a whopping $3.2 billion.

Another $943 million will be taken out of the government's official overseas aid program over the four years. The government has capped the amount of aid money that can be spent on asylum seekers at $375 million per year.

Immigration Minister Brendan O'Connor concedes the number aren't good enough.

"Obviously the current arrival rate is not acceptable in terms of the risks to human life or the impact on the budget," he said.

Asylum seekers boats are coming in ever increasing numbers, with more than 22,000 people arriving so far this financial year.

This is despite Labor's decision to resurrect the Howard government-era detention centres on Nauru and Papua New Guinea's Manus Island.

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The opposition tipped a $5 billion blowout in Tuesday's budget but Mr O'Connor says the $3.2 billion estimate is "reasonable".

Mr O'Connor says the government will conduct a comprehensive review of the refugee status determination process to make sure Australia's acceptance rates are consistent with other comparable countries.

He says the government will continue to pursue the Malaysian people swap deal and renewed his call on the coalition to support the plan in parliament.

The government has also revealed it will more than double the cost of applying for a 457 temporary skilled migrant visa to $900.

That's aimed at sending a stronger price signal to employers that they should be looking for Australian workers first.

"The Gillard government's top priority will always be jobs for Australians," Mr O'Connor said.

The government is keeping its humanitarian intake steady at 20,000 refugees per year. The permanent migration program will also be static at 190,000 places.

National Farmers' Federation (NFF) President Duncan Fraser blasted the government's increase in the cost of applying for a 457 visa, saying farmers would find it more difficult to employ reliable workers.

"We see an increase of that magnitude as a disincentive to employers to pursue visa applications for skilled workers," he told reporters.

"We need all forms of assistance in terms of getting labour out to regional areas."